DATA ANALYTICS/ BLOCKCHAIN

WHAT IS

DATA ANALYTICS?

The process of collecting,

organizing and analyzing data

to discover patterns and

other useful information.

The process of developing

actionable decisions or

recommendations based on

insights generated from

data.

What is data analytics

Better understand information

contained within the data.

• Identify the data that is most

important to the business; and use it

to make business decisions.

• Data-driven decision making

• Example benefits include:

• Increased efficiency

• Improved operations

• Enhanced customer retention

• Examples:

• Walmart: Hurricanes & Pop-Tarts

• Osco Drug (?): Beer & Diapers

• Target: “Targeted” advertising

Data Science/ Data Analytics:

A Three-Legged Stool

Technology acumen

• Business acumen

• Statistics acumen

THREE TYPES OF

ANALYTICS

Descriptive

Analytics

Predictive

Analytics

Prescriptive

Analytics

PREDICTIVE ANALYTICS

Numerous well-known examples

• Starbucks determining where to open new stores

• FedEx predicting customers’ response to price

changes and new services with 65~90% accuracy

PRESCRIPTIVE ANALYTICS

Uses both descriptive and

predictive techniques to create

alternatives, and then helps to

determine the best one.

SOME  POTENTIAL

CHALLENGES IN DATA  A N A LY T I C S

Big Data – The sheer volume of data

• Reality and the phenomenal world

• Forecasted to be 163 ZB by 2025

• Data formats

• Structured vs. Unstructured

• Text, images, sound, etc.

• Data location

• Data silos

• Internal vs. External to the organization

Data visualization: What is it?

Data visualization apps include:

• Tableau

• Power BI

• QlikView

• And many others ...

WHAT IS BLOCKCHAIN

TECHNOLOGY?

A blockchain is a distributed ledger of

transactions

• Blockchains consist of multiple blocks, each

of which contain time-stamped transactions

• These blocks are joined together in a chain

• Nodes (computers) are connected devices

that have a copy of the entire blockchain

and can validate transactions

• The nodes are periodically synchronized to

ensure consensus on the blockchain

Encryption

asymmetric encryption systems

• provide a public key to convert plain text into

encrypted text,

• require a private key to convert encrypted text

back to plain text

Digital signature

encrypted form of electronic ID

SUPPORTING TECHNOLOGY
TRANSACTION VALIDATION AND CONSENSUS

Participating nodes compete to assemble transactions into

blocks

• Winning node earns a reward (transaction fees for the block;

e.g., in bitcoin, etc.)

• Blocks can be won via different methods:

• Proof of Work (PoW) – solving complex mathematical problems (e.g.,

Bitcoin mining)

• Proof of Stake (PoS) – random selection process of “stake” in blockchain

(e.g., Ethereum)

• Proof of Elapsed Time (PoET) – waiting for random amount of time

• ... and others

• Nodes must agree to add new blocks to reach consensus

SUPPORTING TECHNOLOGY

HASH FUNCTION

A cryptographic function that

converts one value to another

(producing a hash value)

 e.g., SHA256

 How are hash functions used

with Blockchain?

 Input: the data from each block

 Output: a unique, fixed length

string of characters

 Any change to the input changes

the hashed output

PUTTING IT ALL TOGETHER

Blockchain technology creates an immutable record of

transactions that is distributed across the nodes of the

blockchain network.

• Usually quite secure, unless:

• An individual or group gains control of a majority of the nodes

• 51% attack

• Why?

• Can change or remove existing transactions

TYPES OF BLOCKCHAIN NETWORKS

Public

private

semiprivate

consortium

BLOCKCHAIN APPLIC ATIONS

Cryptocurrencies, such as Bitcoin, Ethereum, Litecoin, etc.

• Smart contracts

• Digital identity

• dApps (decentralized applications) and Web3

• NFTs – Non-fungible tokens

• A verifiable, digital asset that represents digital or physical objects like art,

music, and other collectibles that are easy to trade on the blockchain.

• Any application where a secure, immutable record must be shared

between multiple parties

• ensuring product authenticity

• recording real estate transactions

• secure medical records

• ... and more